How to Split up profits into an investment ratio

[@enricher.Al-Mughni]

Excellent. Bravo Thank you

[@LindseyLadd]

Or you can make it easier and divide the profit into 50%, 30% and 20%

[@SteveDoesMath416]

That’s true for this case, but wouldn’t be as easy if the investment amounts were more complex.

[@aftabhussainabbasi4943]

some time invester havae different amount of money

[@LindseyLadd]

It’s true for every case. An investor’s return on investment will match the percentage contributed to the initial investment.

[@redhood2091]

best explanation so far

[@Advik.k-v2m]

but when given time is different then how it will be solve

[@alimiyanahamd8679]

Hey , Steve how do you split up the profit at the end of the year if they invested on different month. Like i invested on Jan but my friend invested on june and October

[@SteveDoesMath416]

Excellent question! I'll try to make a separate video to explain!

[@anandalvares]

Thank you. It’s educational

[@jennyduron5315]

Would this be done the same way with just 1 investor? Or would it be investor plus the owner?... Thank you!!

[@SteveDoesMath416]

This would be done with whoever has investment into the business

[@jennyduron5315]

Do you know how they are actually paid out regarding taxes?@@SteveDoesMath416

[@babyg5467]

What if the profit is smaller than the investment? Does it u had losses?

[@SteveDoesMath416]

Same process to split any amount of profit. If there are losses, then there would be no money to split :(

[@babyg5467]

@@SteveDoesMath416 thank u! Very helpful

[@dongladson2771]

Nice teaching bro

[@SteveDoesMath416]

Thanks Don!

[@babyg5467]

When u say profit, does it mean all expenses had been removed from the total sales and 32000 is the money left after deductions?

[@SteveDoesMath416]

Yes, that's exactly correct. Profit = Revenue (sales) - Expenses

[@AttyVico]

Easy to understand this computation

[@silviaalvarado7588]

If the 2000 investor is leaving do I give him the 6400 profit plus the 2000?

[@SteveDoesMath416]

Generally, that would be how it's done - unless you have a different arrangement with the investor.

[@babyg5467]

Can we do this monthly instead of yearly?

[@SteveDoesMath416]

sure!

[@osamakhan-tt3gj]

Thanks 👍

[@mankar18]

Thank you so much brother 🙏

[@alixsaansom]

This is so important for me ❤ .

[@bass8804]

say somebody invest more money in the next quarter, do you add the previous investment of a particular person to that of the new one or do you start fresh for the next profit split?

[@SteveDoesMath416]

Great question! Usually, you would add the new investment to the previous investment. Same way as buying stocks. If you buy more stock, you have more stock overall. :)

[@AttyVico]

Im from the Philippines my question is my investor shares 750,000 peso money and my investment are chairs, computer, office, how can i compute my share investment and what do you call my kind of investment? Please advice... Thank you

[@SteveDoesMath416]

Thanks for the question. If someone invests things like chairs, and computers, you would just have to determine a value of those things and use that as the investment amount. So if chairs and computer are worth $2000, then your invest would be $2000

[@DeeJayDa_]

Very nice explanation... What about if only one person is actually running the business and do all the work. Will the profits still be shared like this?

[@SteveDoesMath416]

You can share profits any way you like. If one person is doing all the work, you may want to put a value on that, so instead of dollars of investment, you would have a certain amount of time invested that would equal a sum of money that everyone agrees on.

[@DeeJayDa_]

@@SteveDoesMath416 appreciate ur reply even after two years of this content... I definitely learned something good. Thanks

[@issacwais3078]

Thank you, you just help me with my assignment✌✌

[@emmanuelmwansa3890]

Thank youuu so much ❤️

[@mubashirhabib8131]

thanks from Pakistan.

[@Sync7teen]

Urge of a lefthander using the ring book invertly.

[@doreendoctor8231]

Actually u can do it in an easy way that is to say 5000/10000*32000

[@luxmivelu1839]

So easy.thank you

[@OliMWorld]

Good stuff

[@Eliza-xl1ev]

Thanks

[@thebrizzell]

Nice video but got anything on making a SAFE? NOT again NOT What a SAFE is. I can't find anything

[@SteveDoesMath416]

Are you referring to the math game for students?

[@doreendoctor8231]

Actually u can do it in an easy way that is to say 5000/10000*32000